ERPs for all : factors contributing to the successful implementation of ERP systems in Maltese SMEs

Abstract

Enterprise Resource Planning (ERP) systems are designed for the task of integrating the internal and external processes of an organisation through the use of a centralised database. Being so beneficial for a firm, both large organisations and Small and Medium-sized enterprises (SMEs) strive to adopt such software; however, implementation failure rates are often as high as 90%. Furthermore, ERPs are often perceived as an expensive and risky investment which most SMEs consider unaffordable. This study tackles the problem of implementation failures, specifically in SMEs which construe 99.8% of Maltese firms. The primary aim of this work was to come up with a list of Critical Success Factors (CSFs) which could significantly increase the implementation success rates. Previous studies, together with interviews involving industry experts, firms who have successfully implemented an ERP and low-level users were conducted in order to come up with such a list for ERP implementation in SMEs. Furthermore, the relevance of each factor in each phase of the implementation lifecycle was analysed. One final objective was to determine whether these CSFs vary in large organisations and in SMEs, specifically in Maltese SMEs. The completion of this work has resulted in a list of factors, mainly relating to technological, organisational and environmental considerations, rated according to their importance in each stage. The successful achievement of the objectives means that the implementation process can be enhanced while the effort, attention and resources of IT consultants and management of SMEs can now be directed to those factors that can actually make an implementation successful.